What we do know is the ceiling stalled the rally, and the bullish control weakened
Earlier, I outlined the EURUSD test of a swing area at 1.12617-641 area. That area ended up stalling the rally after testing it a few times. The price started to come down and the fixing at 4 PM in London, seemed to attract more selling. Or is it just traders squeezing higher and then getting whipped on a reversal?
Anyway, now the pair is back lower and looking to test its 200 bar MA on the 4- hour at 1.12273. The low just reached 1.1230. The pair has the caught a reversal cold as market traders struggle with what are the global implications for the dollar, EUR, GBP – well all the pairs. Ups and downs like this happen because of uncertainty (absent new news).
Looking at the 5-minute chart, the high resistance area from the hourly chart was tested 3 times before the sellers assumed the throne and took control. Falling below the 38.2-50% gave seller even more control. Now the pair si back down looking to test the 200 bar MA on the 4-hour at 1.1227. Does that MA (which has done a good job of holding support over the last 24 hours), now stall the fall?